Indian Economy Questions

Q:

Which among the following is not an instrument of fiscal policy?

A) Taxation B) Public expenditure
C) Public debt D) Credit Rationing
 
Answer & Explanation Answer: D) Credit Rationing

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Q:

Which of the following measures will not increase a nation's wealth?

A) investing in new companies B) increasing efficiency of factories
C) converting grasslands into orchards D) By redistributing taxes as subsidies
 
Answer & Explanation Answer: D) By redistributing taxes as subsidies

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Q:

Who is the Chief Economic Advisor to the Government of India?

A) Raghu Ram Rajan B) Arvind Subramanian
C) Rajiv Mahirishi D) Arvind Pangariya
 
Answer & Explanation Answer: B) Arvind Subramanian

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Q:

If demand curve for roller skates is D = 23000 - 19P and supply curve is S = 18000 + 6P, find the equilibrium Price?

A) Rs 100 B) Rs 400
C) Rs 50 D) Rs 200
 
Answer & Explanation Answer: D) Rs 200

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Q:

Unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand is called

A) Structural unemployment B) Frictional unemployment
C) Seasonal unemployment D) Cyclical unemployment
 
Answer & Explanation Answer: A) Structural unemployment

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Q:

If the rupee depreciates, how the exporters are affected?

A) They are unaffected B) They are in loss
C) They are in profit D) They get credit crunch
 
Answer & Explanation Answer: C) They are in profit

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Q:

Credit Rationing in India is done by

A) RBI B) SBI
C) LIC D) Finance Ministry
 
Answer & Explanation Answer: A) RBI

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Q:

In 2015, the real rate of interest in a country was 6% and the inflation rate then was 3%. So the nominal rate of interest in 2015 was

A) 3% B) 6%
C) 9% D) 12%
 
Answer & Explanation Answer: C) 9%

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